So much ‘liquid gold’ could hit the market that the world’s top producer is withholding output—but supplies can’t stay ‘extra virgin’ for long

A bumper harvest of olives threatens to jolt the olive oil market, prompting the world’s top producer to suppress supplies for the first time ever.

On Friday, Spain’s agriculture ministry ordered farmers to hold back 12% of their production until the end of September 2027, requiring them to store supplies on their farms or at third-party facilities.

“The measure aims to ensure farmers’ profitability and also to protect the interests of olive oil buyers,” it said, according to the Financial Times, adding that “greater stability to the market” will benefit producers and consumers.

While the move is unprecedented, the European Union allows olive oil supplies to be held back, unless it leads to excessive market distortion.

The current harvest season for so-called “liquid gold” began in September, and favorable weather this past spring promises to reverse years of drought and heat that kept olive production........

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